Young shoppers help boost domestic cosmetics brands
Updated 19:55, 28-Nov-2020
By Wang Siwen
01:56

Cosmetics are one of the fastest-growing and most promising industries in China. Retail revenues reached nearly $45 billion last year, and are expected to surpass $60 billion in three years' time.

"Generation Z and millennials take up 29 percent of China's population, accounting for 59 percent of China's cosmetic consumption," said Sun Lei, chief marketing officer at Yatsen, noting that the penetration rate is much higher among youngsters.

With improving quality, branding strategies and the growing role of online shopping, local brands, including Perfect Diary and Florasis, are getting closer to the hearts - and pockets - of China's young. During China's Double 11 online promotions, Perfect Diary's retail sales ranked first for color cosmetics, but when it comes to high-end products, Chinese brands face strong competition from foreign brands.

"Some top beauty groups in Japan and South Korea can take up to 20 percent of the market share. In China, take Perfect Diary, for example, this single brand's market share in cosmetics is around five or six percent, so there's a great potential," Wang Tianshi, managing partner of HONY Capital, said.

It seems that there's still a long way to go for China's domestic brands in the battle for market dominance.

(Cover via CFP)